LVS INVESTOR DAY: PART 4

Macau presentation

MACAU OPERATIONS: ED TRACY

Generating more CF than any other company in Macau

Top priorities are to open Sands Cotai Central on time and on track, grow their VIP business through improving junket relationships, and remodel the mid and high end mass market amenities at Venetian and Sands

Market share of EBITDA is 30% followed by WYNN at 22%. 72% of their EBITDA comes from Casino, 15% from hotel operations, 8% from Retail, MICE & other and 5% from F&B

LTM June retail sales reached $1.1BN vs. $832MM in 2010

Profit margin by segment:

VIP: 16.1%, Mass: 44.5%; Slots: 45.6%; for a total of 27.4%

What they are doing to grow VIP: facility enhancements, increasing level of customer and concierge services, investment in new VIP Junket rooms at Plaza (FS); increasing marketing efforts to attract best and most profitable VIP customers

Venetian: renovating space for the first time since 2007, new premium mass table area with 66 tables, new premium slot area with 156 high limit slots, expected completion Jan 12

Venetian Piazza: renovations to VIP and salons, new porte cochere to be completed in phases by feb 13'

Four Seasons expansion: 33k SQFT built out with junket operator - adding 28 RC tables. Already have a junket agreement in place.

Wynn has provided a good blueprint on how to partner with the junkets. They realize that it's not just renovations but building better relationships. They realize that it's a market that they haven't served well. Improving the real estate is just part of what they are doing. Their approach before was competing with the junkets which perhaps wasn't the wisest decision.

Sat with an operator that will do 100MM in RC volume and they don't have a relationship with them currently

How many of the Sands Cotai Central are sourced from under utilized tables? They have 400 new tables that were granted. Have 150 un-utilized tables at Venetian that they are moving over. Also, they have more ETG's since 9 seats counts as just one table

Think that they have $200MM+ EBITDA opportunity through their repositioning projects at Venetian & FS

They will get a 1 year return on the new rooms at the Plaza - those 2 rooms are already contracted

How are they going to structure their marketing so that they are actually targeting new customers vs. cannibalizing existing clients?

A: Have a number of new marketing programs - ecommerce program - systems that pre-sells inventory and markets distressed opportunities. Looking at every possible distribution channels for their hotels. Continue to convert more day trippers to overnight guests. Expect to exceed the bar that Galaxy Macau set. Working with MICE to fill in weeknight rooms. Also have 5 different hotel price points to work with.

Executing job fairs at the property. Government wants to exhaust their ability to hire all the talent in the market. Having their 4th job fair. If they still need employees, then the government is much more cooperative in allowing them to import labor. They are highly confident that they will be able to hire and fill all the positions.

Are they giving junkets more commissions or better credit extension? They are increasing their credit exposure in a very disciplined way. The profile won't change but the credit will increase proportionately. For partners that will bring them huge volumes, they will increase incentives to those junkets. It's not all about commission levels, just look at Wynn.

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